Introduction
Sales tax registration is essential for establishing your business's legal compliance with tax regulations in that specific area. There are various reasons why registering for sales tax remittance in a jurisdiction is crucial:
- Legal compliance — Registering for sales tax remittance in a jurisdiction is often a legal requirement once a business meets specific criteria, like reaching a sales threshold or establishing nexus. Failure to register can result in penalties, fines, or legal actions, which can negatively impact the business's operations and reputation.
- Tax collection responsibility — Upon registration, the business collects and remits sales tax from customers in that jurisdiction. Proper registration ensures that the business fulfills its tax obligations, contributes to the local economy, and complies with tax laws.
- Avoiding penalties — Failing to comply with sales tax registration can result in severe penalties or interest charges. Registering on time helps businesses avoid these penalties and maintain good standing with tax authorities.
Registering for sales tax remittance in a jurisdiction is not only a legal obligation but also a means for businesses to maintain compliance, avoid penalties, and establish credibility with both authorities and customers.
In the US, Anrok can handle sales tax registration in any state or city that taxes SaaS, including home-rule jurisdictions. For non-resident EU OSS, Canada (all provinces), and the UK, where you have a taxable product, Anrok can handle the hassle of getting compliant by processing your global tax registration via the non-resident scheme.
Initiate sales tax compliance in a jurisdiction
For any state where you have a taxable product, Anrok can handle the hassle of getting compliant by processing your sales tax registration and scheduling when you start calculating and remitting sales tax. All you need to do is initiate sales tax compliance in the jurisdiction, then specify your preferred tax calculation date and tax collection method. See How do I know if I need to get compliant?
Try initiating compliance in a jurisdiction in the demo above ☝️
Step 1 - Initiate compliance
- In the Anrok app
, go to Jurisdictions. Take me there!
- Under the Action required tab, select an
or
jurisdiction. If you are not exposed or approaching exposure in the jurisdiction you want to register in, you can find it under the All tab.
- Review the cause of exposure, then click Get compliant.
Step 2 - Complete registration request form
U.S. jurisdiction registration request form
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Global jurisdiction registration request form (Supported locations only)For non-resident EU OSS, Canada (all provinces), and the UK, where you have a taxable product, Anrok can handle the hassle of getting compliant by processing your VAT/GST/PST/RST tax registration via the non-resident scheme.
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Step 3 - Review and submit
- Review your registration request's submission details.
- When you are finished, click Submit.
Note
Once you've initiated compliance in a jurisdiction, our Registrations team will begin processing a sales tax registration in the jurisdiction. This process typically involves establishing a sales tax account for your organization in the relevant jurisdiction. Check your email for correspondence from registrations@anrok.com, where we will inform you about potential paper mailings you should be on the lookout for from the jurisdiction containing your sales tax account ID, as well as any other action items you may have. See Check-in on processing registrations.
Sales tax registration fees
Some jurisdictions charge a processing fee for sales tax registration in a jurisdiction. Once you register for sales tax in any of these jurisdictions, you will see these charges debited from the bank account listed on your Settings page. The table below lists the states that currently charge fees upon sales tax registration and the amounts:
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